Tag: income

Why We Aren’t Banking on Social Security for Our Retirement — But Why You Might

Today we’re continuing the mini-series on Social Security and Medicare by looking at whether or not you should build Social Security into your retirement plan. We’re not counting on it, in part because we don’t need to, but also for some big reasons that are worth considering for everyone who wants a secure financial future. Give it a read and then let us know what you think!

The Income Streams Our Early Retirement Is (Now) Built On

When we first formulated a real early retirement plan, it was based on the rigid belief that we’d never, ever work again. Or at least never *have* to work again. And while that’s still true — we haven’t expedited our plan by forcing ourselves to earn income in the future — we now expect to get a much more diversified set of income streams in early retirement. In part because life happens and we’ve made some different choices along the way. And in part because that recession hasn’t hit yet, health care is still up in the air, and it makes sense to keep hedging against sequence risk and health insurance uncertainty.

Calculating Our "Enough" -- Determining the Numbers Behind Our Financial Independence and Early Retirement Plan

How We Calculated Our “Enough” Number for Early Retirement

Today I’m (finally) sharing something that I’ve wanted to write about for a long time, but haven’t tackled because there is no easy formula: how to determine what is “enough” to save for early retirement. “Enough” is perhaps the centrally important concept to early retirement, but it can feel overwhelming to quantify your own. Here’s a breakdown on how we calculated ours, and how you can do the same for your own circumstances.

OurNextLife.com // Early Retirement and Financial Independence Blog | Working in Early Retirement | Portfolio Preservation | Increasing the Odds of Early Retirement Success

Rethinking Work in Early Retirement // Contingencies, Sequence Risk and Fail Safes

We have said from our second post ever that our vision for early retirement has never included mandatory work. And we’ve been more vigilant about this fact than probably any other in our early retirement plan. We’ve shifted our investments, we’ve changed our timelines, we’ve debated when to give notice, but we’ve never wavered on the no mandatory work idea. But… that might be changing.

OurNextLife.com // Optimizing Our Early Retirement Income // Taxes and ACA vs Actual Cashflow

Optimizing Our Retirement Income // ACA and Taxes Vs Actual Cashflow

There’s an issue that we’ve struggled to get our heads around, which we’ll call our optimal retirement income: a level at which we get a big Obamacare/ACA subsidy on our health insurance, we pay low taxes and we enjoy a comfortable standard of living. But calculating that number is not as straightforward as it seems. Enter the income vs. cashflow discrepancy!

How My Audit Fears Dictate Our Taxes

I have a super visceral memory related to taxes that I still carry around with me. My parents divorced when I was in high school. The divorce itself was fine, but what was not fine was watching them get audited post-divorce for a year in which they had been married. It was the worst I ever saw of my parents, but it was also an important lesson in dealing with accountants and the IRS.

Our Golden Handcuffs // Sticking It Out in Stressful Jobs Until We Retire

we feel the sunday blues in a big way. and we know why: not only do we just not love having to work every day, we know that we’re in especially high pressure, stressful, occasionally soul-sucking jobs. but we didn’t just default into these golden handcuffs of ours, and we don’t stay in our jobs because we lack imagination. our choice to stay put in unsustainable jobs is a clear-eyed decision we’ve made, based on considering all of our options and deciding what’s most important to us. the most important thing? getting to our exit date as soon as we possibly can.

The Ten Questions to Answer Before You Retire Early

early retirement is a bfd. and it’s not for everyone. it’s a very different path from the one most people follow for a reason, and it’s not one we should go down without having our eyes wide open. early retirement won’t magically fix everything we wish was different about us or our lives, and it comes with its own set of pitfalls and stresses. to help sort this out, we’ve put together a list: the ten questions you should be able to answer before you retire early.

Finding Your Kindling // Lighting Your FIRE with Contagious Flames

you know we love a good object lesson. recently we had one inexplicable morning when the fire just would. not. light. those days are a reminder that the definition of insanity is doing the same thing over and over but expecting different results. the answer: add kindling. the point of the kindling is not only to get us past those obstacles, and to get the fire going a little, but to get those flames to start spreading — and spreading fast.

The Anti-Greed Manifesto // Early Retirement Is About “Enough”

we’ve both come across a seemingly frequent but also puzzling (to us) phenomenon while perusing new blogs. when aspiring early retirees are telling people in their lives about their plans to retire early, they’re getting negative responses. one of which has us utterly befuddled: the assertion that the accumulation of assets required to retire early constitutes pretty much the worst quality we can imagine: greed. here’s our response, in manifesto form.

All the Charts // Our Progress Toward Early Retirement

today we’re sharing the clearest glimpse yet into where we are on our journey toward early retirement in money terms, along with a detailed breakdown of how we plan to fund both our early retirement and our full retirement. we’re talking percentages instead of absolute numbers, but are going into a lot more detail than we ever have before. that’s right: it’s all the charts.

Adjusting Our Goals // Rolling With the Market Punches

we’ve been tracking our numbers for years now, and have always set annual goals for ourselves in terms of savings and mortgage paydown. but crazy as it may sound for us to say this, we’ve never defined those goals in terms of strictly what we would contribute. we’ve only defined our goals in terms of total balance. but with only goals about total balances, we now feel like we’re failing in the current market landscape, when the truth is that we’re saving more than ever. here’s how we’re adjusting our goals.

On Still Not Sharing (Most of) Our Numbers // Talking Finance With No Finances

one of our earliest posts on this blog was about how we don’t share our numbers. it’s mostly because, one day not too far off in the distance, we will drop this whole anonymous charade, and we don’t want all the details of our finances attached to our names and faces. in our culture, money comes with meaning and prejudgments. having x amount means you’re supposed to behave a certain way, dress a certain way, spend a certain way. we don’t want those expectations to precede us.

Progress and Uncertainty on the Road to Early Retirement // Mid-Year Check-In

looking at things big picture, we’re astonished at how far we’ve come in a short time, aided in large part by jobs that overpay us. since we bought the house four years ago, our net worth has tripled, and the year-over-year gains are pretty big, owing to us getting serious about saving and about paying off the house quickly, as well as growth in the markets since 2009.